Vedanta Ltd’s share tumbled over 2 per cent on Thursday on NSE after reports suggested that the Odisha Pollution watchdog has directed the company to close five units of its plant in Katikela on account of ash pond breach. The shares of Vedanta Ltd traded lower at 2.19 per cent at Rs 319.95. It became the second biggest loser on the NSE after Wipro.
Wipro lost 4.28 per cent to the day’s low of Rs 283.25 on NSE on Thursday, a day before the record date of Rs 11,000 crore share buyback.
The Odisha State Pollution Control Board (OSPCB) directed the mining conglomerate to temporary shut-down three units of 1215 MV at the Captive Power Plant (CPP) and two units at the Inspection Test Plan (ITP). The watchdog also asked the company to submit a concrete plan in five days.
“Consent to operate in respect of 3x135MW out of total 1215MW CPP is hereby revoked and you are hereby directed to close down operation of 3x135MW CPP forthwith and restrict power generation up to 810MW (6x135MW),” said the notice.
According to the pollution board, ash pond breach that occurred on August 28 led to flowing of a whopping 42, 24, 000 metric tonne of ash slurry into Bheden river and nearby paddy fields. The board also asked the company not to discharge any industrial effluent and ash slurry from the ash pond area to any water body and land, IANS reported.
The mining conglomerate, however, reported over 100% jump in the consolidated profit for the quarter ended in June 2017 driven by the better margins across most of the metals the company mines. Vedanta Ltd’s consolidated net profit also doubled to Rs 1,525 crore for the April-June quarter of FY 2017-2018.